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mestny [16]
3 years ago
15

A company has revenues of $100 during Year 1. Each year their profit is 20% of revenue. Revenue is growing 15% per year. How muc

h total profit (rounded to the nearest penny) will the company earn during Years 1-10
Business
1 answer:
oksian1 [2.3K]3 years ago
5 0

Answer:

$406.07

Explanation:

Revenue for year 1 = $100

Profit = 20%

Growth rate of revenue, = 15% per year = 0.15

Now,

year 1 is the base year thus, take it as n = 0

Revenue for the year = $100 × ( 1 + r )ⁿ

Profit = 20% of [$100 × ( 1 + r )ⁿ]

Year       n              Revenue               Profit

  1           0            $100( 1 + r )⁰            $20

  2          1            $100( 1 + r )¹             $23

  3          2            $100( 1 + r )²            $26.45

  4          3            $100( 1 + r )³            $30.4175

  5          4            $100( 1 + r )⁴            $34.98

  6          5            $100( 1 + r )⁵            $40.227

  7          6            $100( 1 + r )⁶            $46.261

  8          7            $100( 1 + r )⁷            $53.2004

  9          8            $100( 1 + r )⁸            $61.1804

  10         9            $100( 1 + r )⁹            $70.357

   Hence,

Total profit for the year 1 - 10 = $406.07

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The causes of negligence hiring are-

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An employer be concerned about negligent hiring and retention because-

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The elements of a negligent retention claim include all of the following:

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Assume that at the current market price, a perfectly competitive firm's profit-maximizing level of output yields total revenues
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Pure competition refers to an ideal market with very many suppliers selling an identical product. Because the sellers are many, none of them can influence the price. Pure competition is also the perfect competition.  Other characteristics of perfect competition include.

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